Challenges That Are Faced by Samsungs Customer Relations - Essay Example

Formal Report due: This paper covers challenges that are faced by Samsung’s relations. Samsung has two challenges in customer relations. Customer service representatives experience high pressure because they receive many negative emotions and hear lots of complaints, and the working environment is not as comfortable as other clerical jobs, in retrospect to the nature of the job. The principles of customer service (integrity, respect, and accountability) must be integrated with the customer relations policy in Samsung’s approach to dealing with their clients, under customer support. The company has a diverse customer base and thus the resources to improve the relationships between customers, employees and management, among others. The importance of leadership is highlighted in this report while defining the role expected of different players in the business. The report also incorporates the elements of building a proper customer service repertoire. The customer service is to be supported by a charter and standards, which also incorporates the use of norms and organizational practices. The above discussion and recommendations demand that Samsung improves on the employee policy to empower their contributions to customer challenges, by developing an employee well versed with the company operations, in different product departments, to improve on knowledge directed towards customer-service In this way, stronger customer loyalty will be built that leads to better company image and increasing revenue. The report concludes with the provision of a conclusion based on findings, and recommendations that would improve on how the company relates with customers. The paper limits the study to the electronics branch of the business. Table of Contents Abstract 2 This paper covers challenges that are faced by Samsung’s customer relations. Samsung has two challenges in customer relations. Customer service representatives experience high pressure because they receive many negative emotions and hear lots of complaints, and the working environment is not as comfortable as other clerical jobs, in retrospect to the nature of the job. The principles of customer service (integrity, respect, and accountability) must be integrated with the customer relations policy in Samsung’s approach to dealing with their clients, under customer support. The company has a diverse customer base and thus the resources to improve the relationships between customers, employees and management, among others. The importance of leadership is highlighted in this report while defining the role expected of different players in the business. The report also incorporates the elements of building a proper customer service repertoire. The customer service is to be supported by a charter and standards, which also incorporates the use of norms and organizational practices. The above discussion and recommendations demand that Samsung improves on the employee policy to empower their contributions to customer challenges, by developing an employee well versed with the company operations, in different product departments, to improve on knowledge directed towards customer-service In this way, stronger customer loyalty will be built that leads to better company image and increasing revenue. The report concludes with the provision of a conclusion based on findings, and recommendations that would improve on how the company relates with customers. The paper limits the study to the electronics branch of the business. 2 Table of Contents 3 Executive summary 6 Introduction 7 Customer service 7 Samsung 8 Problem statement 10 Problem justification 11 Findings 12 Principles of Customer Service 13 1. Integrity 13 2. Respect 14 3. Accountability 14 Modeling the Culture of Customer Service 15 Elements of Customer Service 16 Identifying and Understanding the Customer 16 Building a Customer Service Strategy 18 Vision 18 Action plan 18 Implementation plan 19 Improvement measurement 20 Recruitment and Management of the Right People 20 Develop Customer Service Charters and Service Standards 21 i. Customer service charter 21 ii. Service standards 22 Shaping Organizational Policies with Customer Contributions 22 Recommendations 22 Conclusion 23 Works Cited 24 Table of Figures Figure 1: SMART objective formulation 19 Executive summary Samsung is a leading manufacturer and distributor of electronics and communications devices. Despite its popularity, the company has a poor reputation in customer service. Research conducted by third parties suggests that the company has a staff that is incapable of handling the concerns of customers, and there is a need to improve on customer service. Reports from most of the customer reviews outline that the majority complaints are about the careless and rude attitudes of customer service representative. The complaints were that customer service representatives experienced high pressure because they received many negative emotions and heard lots of complaints, and the working environment is not as comfortable as other clerical jobs, in retrospect to the nature of the job. In this report, I will describe the concepts of customer service, contributors of a quality service and how to approach developing a structure that encompasses the customer service principles. The components of the customer service strategy are vision, an action plan, implementation plan, and improvement measurement technique was needed by Samsung to build a better customer relationship. This entails asking the customers their needs, and where they feel improvements are needed is part of the approach assumed by organizations interested in retaining their customers and a sign of set priorities. Next, I will propose that Samsung ought to conduct training on how to deal with pressure within this month. Conducting surveys on employee’s mental health periodically can see if the training is effective. I will do this by employing behavior modeling and role-playing techniques. Finally, I will provide Samsung with a recommendation on improving the customer service department. Upon the adoption of the proposal improving, employees’ morale will be realized. Introduction Customer service A customer is an individual in, or affected by, a direct relationship with an agent who is a recipient, or relies on the services or products the agent provides in the market. Customer service involves the delivery of services before, during, and after sales. It is defined best as building a relationship with the customer in a manner augmented at promoting loyalty and adherence to the services business provides. The service also incorporates proving information that would contribute to the choice made by the customer. As suggested by Turban (12), customer service is an intricate system of services developed with the aim of enhancing the customers’ level of satisfaction when engaged in transactions and communication. In considering what the concept of customer service, customer satisfaction must be incorporated in the assessment. Customer satisfaction is the impression that a consumer is left within any engagement with a service or produce agent with respect to the degree to which expectations about quality, service, efficiency, and interaction are met. The importance associated with a product’s or service’s customer service varies, depending on the industry, utilization of the acquisition, longevity, competitiveness of the sector, as well as the customer. Some customers who do not feel the urge to engage the agent after sales, and take on an independent role in the service, but others engage the agent in every step of the acquisition’s use. In the context of an organization (in business) the customer service concept may be considered as culture, especially where the organization spends resources in training the employees on how to interact and relate with the customer, more than the average organization, and concentration on the feedback by the customers (Buchanan). The main factor associated with the customer service approach in business is the benefits that come from a healthy relationship with the customer, since the relationship influences the organization’s ability to generate income and revenue. Customer service can take different forms depending on the industry. In this study, the company of interest is Samsung. The company is in the electronics industry making and selling products in the categories of mobile devices, TV/Audio and Video, Cameras and Decoders, Home Appliances, PC / Peripherals, and print solutions. Considering the versatility of the company’s portfolio, customer service can be provided through different avenues, but the efficiency to how this is done is the objective of the study. Samsung Developed in 1938 by Lee Byung-Chul, Samsung has grown to be a top ranked provider of electronics in the home. The company is based in Samsung Town, Seoul, and has gained much experience in relating with the market across various industries. Initially, the company was introduced as a trading entity, although it has diversified to incorporate food processing, insurance, textiles, electronic, and retail. The company was split into for after the death of Lee: Samsung Group, Shinsegae Group, CJ Group and Hansol Group. However, the company’s subsidiaries are part of the reason for the growth of the business into a multinational conglomerate. Samsung subsidiaries include: • Samsung electronics (IT) • Samsung Heavy Industries (Shipbuilding) • Samsung Engineering (Engineering, Procurement and Construction), and • Samsung C&T (Construction) Following the diversity of the company, it has numerous products and service, which include: • Textile and Clothing • Chemicals • Consumer electronics • Electronic components • Medical equipment • Precision instruments • Semiconductors • Ships • Telecommunications equipment • Advertising services • Construction services • Entertainment services • Financial services • Hospitality services • Information and communications technology services • Medical services • Retail services Samsung, under electronics, traces its history back to 1979, which was the initial period of growth based on home electronics. The stage at which the company began exporting its products. It acquired 50% in Korea Semiconductor, thereby establishing dominance in the semiconductor industry. Other subsidiaries have experienced growth through different approaches, but the results have been growth of the company, such that it established a computer-programming laboratory in Warsaw, Portland. Problem statement There has been uproar in the market on the quality of Samsung in customer service. The American Customer Service Index has shown evidence that Samsung gained a less than average rating of 71. (The Inquirer) According to most of the customer reviews, the majority complaints are about the careless and rude attitudes of customer service representatives (customer service scoreboard). Due to poor customer services, Samsung is losing customers’ loyalty, which is the problem that impairs the competing ability in the electronic device industry. The question to the complaints is what the company has not done despite the elaborate and modern approach the company has initiated to ensure there is a connection between the company and the market. From the support tab in the company website (http://www.samsung.com/), customers can gain service in various ways. The website features links under manuals and downloads, help and troubleshooting, how to videos, cyber service, live chat, and repair status, which are all aimed at customer service. Considering the company is a global trendsetter. The provided channels of support cover the global community, though consumers complain. Problem justification Customer service is regarded as the core of all retail activities, especially in a highly competitive market, yet it is identified as one part of the business where there exist skill gaps. Customer service has to attain various aspects for it to make an impact in the operations of the business. When practiced the service has to be consistently excellent, and continuous and unrelenting application of knowledge, practices and experience have to be incorporated to the approach to ensure the service upholds in the business. Understanding the needs of the customer is a pillar to a positive and consistent delivery of customer service, just as well as understanding that one’s actions have a repercussion on the business (Solomon). Customer service requires high-level dialog and high-level listening skills, which are skills that need to be taught to employees. This may be a challenge where the employees have diverse culture and language with the customers, which is why most international companies employ locals. Although verbal communication is essential, other factors contribute to customer service such as body language, tone, emotional status, appearance, and awareness. Success in customer service requires a balance of these elements, with the conclusion of the direction being towards increased sales and customer retention. Findings There are mainly two causes of the problem: • Customer service representatives experience high pressure because they receive many negative emotions and hear lots of complaints. • The working environment is not as comfortable as other clerical jobs, in retrospect to the nature of the job. Principles of Customer Service In the working setting, especially where competition is high, such as retail, good customer service is a contributor to the amount of new and retained traffic to a business. Good customer service is dependent on good communication skills, targeted at getting information pertaining the needs of the customer. The approach demands assessment of the verbal and non-verbal communication by the consumers. The skills needed in the approach are identified, but the employees must be observant of the customer with regards to behavior and body language. The environmental factors such as cleanliness and organization also factor into the ability to facilitate the customer’s experience and may not have a human element. As such, principles of customer service must be applied (Solomon). The principles of customer service are integrity, respect, and accountability. 1. Integrity Integrity corresponds to the intention and meaning associated with the actions of the consumer. Body language is a hidden element in most cases, but verbal communication is much easier to decipher. Integrity demands that the service offered are impartial, professional, and contributions made by frank, apolitical and research based. The necessity of this approach is a comprehensive approach to decision making. Interactions with the customer need integrity to incorporate professionalism, and concentrate on making the consumer welcome and appreciated. In most situations, with the introduction of the internet, customers often engage the employees to obtain information that is not accessible over the internet, such as the interaction with a product and service (Solomon). 2. Respect Customers are sensitive to how a business treats them, and good customer service demands that the customer is accorded dignified treatment. The service must also attract a degree of fairness, and sensitivity with considerations to the environment, circumstances, and needs. Comfort is a key ingredient to the success of the enterprise, and it can be easily achieved by treating the customers with respect, regardless of whom, what, or why they are in the outlet. If a customer is treated unfairly, in the presence of others, there is a high chance that others will think that the same treatment shall be accorded to them; thus it should be impartial. Respect for the customer’s wishes is instrumental to the nature of the relationship the employees, and by design the business, has with the market. 3. Accountability Under accountability, consistency is a contributor to decisions made, as the customer demands that the decisions be fair. Accountability is needed most in the event of a negative outcome, and how best to approach the matter. In business, as well as other responsibilities, erring is common, it is how the error is rectified that customers look for dignity, accountability, and respect for others. An example of how accountability affects business is the incorporation of warranties in products. The warranty is a sign of confidentiality in quality of the product, and in the event of a mishap, accountability. If a business was to dishonor the warranty, among other agreements, then there is little accountability in the venture, and a poor reputation of the business is likely to affect the income revenue. Modeling the Culture of Customer Service Improving the customer service by Samsun must incorporate a restructure and remodeling of the existing system. The practice of good customer service is highly dependent of the leaders whose responsibility is to provide the employees with the ability, responsibility and tools to meet the needs of the consumer through a strategic approach that encompasses direction and purpose. The staff must be furnished with a sense of empowerment from which they may draw courage and develop competencies through which they may serve the interests of the public and customers. A structure must be developed while considering the principles, as well as responsibilities of the people involved. The public sector leaders influence service delivery as well as the outcomes of the market. There are various aspects of leadership that must be incorporated in the strategy to improve the customer service. The company has to ensure that the community has steady and enhanced confidence in the services and agencies good will. Ensuring the requirements of the customers are met is key to customer service, since the needs of the customer are directly proportional to the satisfaction of the customers (Solomon). Identifying and removal of barriers in accessing services and information in doing business is a recommendation that must be taken up by all organizations, and constantly monitoring the ease of accessing the organization and affiliated information carried out. Organizations expect benefits from the customer by ensuring that the system of customer service delivery is efficient. One of the benefits that come with an effective customer service system is the ability to derive feedback from the consumers (Buchanan). When the feedback of the consumer is addressed by the organization, a satisfaction comes along with the accomplishment that the customer has a voice and the organization listens. Customers, with such a mentality, can contribute to the planning and policy setting of the organization, since they are the core pillars of the business. Ensuring that the staff is competent and trained to the satisfaction of consumers is a responsibility to the leaders, just as it is an institution a mechanism that facilitates employee performance in customer service. Continuously making improvements to customer service is a responsibility that should be taken seriously to ensure that quality of the service is high. Where global markets are considered, cross-cultural differences are a barrier to business and should be taken seriously as it is the case with Samsung. Ensuring that the cultural tendencies of the market are observed ensures that the degree of satisfaction increases, minimizing negative feedback, and ingraining the company into a foreign society. An analysis of the market, working environment, and attitudes of the employees and customers is needed to strengthen the customer service policies and guidelines, and thus encouraging participation of employees and customers is key to ensuring success on that front (Solomon). It would be wrong to consider that employees have a negative attitude towards customer service and that they would not contribute to the development of strategies and policies to improve relations between the business and customers. Elements of Customer Service Identifying and Understanding the Customer Gathering data from the customers contributes to the development of a customer service program. Asking the customers their needs and where they feel improvements are needed is part of the approach assumed by organizations interested in retaining their customers and a sign of set priorities. In this approach, the value treasured most in a service or product can be derived, thereby facilitating improvements to product/service design. This approach facilitates product design and development as well as sales due to the number of loyal and new customers interested in a product that meets their needs. Resource allocation is another benefit that can be derived from the interactions with the consumer. Through customer expectation identification, an analysis of the resource distribution in the organization can be conducted to ensure that the needs of the market are always revised and incorporated in the business strategies, plans, and objectives (Turban 65). Considering the market needs is important to customer service, but the expectations approved for implementation must be realistic and reasonable, especially in considering the larger portion of the niche market. Such information from the consumer can facilitate market segmentation, which would be an effective way to meet the demands of various groups in the market. A means of analyzing the needs of the customer to the provisions by the organization is important and facilitates customer service practices. Expressing the customer expectations should be open and comprehensive, incorporating management, employees and other stakeholders. Recommendations arising from addressing the customer’s interests must be monitored and studied to establish the efficiency associated with a change, and from such studies recommendations can be provided. Making improvements to the customer policies is needed, but must be supported by evidence, which only comes from monitoring the success of changes made to the existing system. Building a Customer Service Strategy Good customer service strategies focus on the customer, as the core of the operations, including the subject in the business operations and corporate planning process. The components to the customer service strategy are vision, an action plan, implementation plan, and improvement measurement technique. The components should be applied in with an assurance of implementation and outcome data gathering, to detect if made improvements have been effectively incorporated in the business operations (Solomon), or whether the recommended suggestions are effective in ensuring the customer is satisfied with the quality of service accorded by the business. Vision Every customer service strategy must incorporate vision in its plan. The approach to defining the vision is considering the organization’s mission and perspectives and analyzing them from the customer’s point of view. The contents of the vision are expected to include the services the customers will be offered. The vision requires that it be distributed and shared across the organization, for its realization to take place. Action plan Developing an action plan is secondary to identified vision. This step of the process involves identification of the objectives that the enterprise intends to achieve, with respect to the vision. The most recommendable approach to the action plan’s objective identification is the SMART approach, which states that the objectives ought to be: Figure 1: SMART objective formulation Each objective demands that actions are identified according to their ability to develop an action plan gradually, towards the delivery of the customer service strategy objectives. The plan should also incorporate resources that are to be utilized, as well as key performance indicators (KPI). Since the action plan is the guiding document used in the implementation phase, it is essential to the development of the customer service strategy. Implementation plan Logically, after the action plan, implementation should follow. The implementation plan or phase is a process in which the action plan is put into acts and plans and adjustments made towards the document’s realization. The commitment associated with the approach is one of quality services improved service delivery, which involves accountability, responsibility, appropriate allocation of resources, clear time frames, measurement, effective communication, and a reward scheme that is coupled with recognition of achievements via merit (Solomon). The overall success of the customer service strategy is reliant on the implementation of these elements in the planning and implementation of the action plan and consequently the quality delivery and improvement of the customers’ service concept. Improvement measurement Improvements are the main objectives to the customer service strategy, and ensuring that data concerning advancement of relationships with the customers and employees must be established. Improving service delivery is only understood if there is an indicator of hope the market relates with the product or services offered, as well as an understanding that the perspective take by the customers’ needs improvement. A common approach in measurement improvement, in modern days and via using technologies in the communications sector, is feedback from the customer. Customers should be encouraged to provide honest feedback, which may mean the incorporation of a credible anonymous criterion of obtaining the results of the implemented strategies. Recruitment and Management of the Right People Customer service is dependent on the nature of the employees, such that they should possess the values that would amplify customer relations with the business. The employees should have values and capabilities that would meet the standards expected of them by the organization, as well as the consumers (Solomon). Clarity in the job is an important aspect in the choosing on employees, as they should accurately adhere to the job policies and regulations, and contributes to the assessment value in choosing a good fit, organization wise. Use of rewards and acknowledgment of the contributions of the staff is a motivational approach that is meant to ensure continued productivity. Quality improvement is highly dependent on the attitude and approaches assumed by the employees, considering they are the link towards the customers. Improvement of the services accorded by the customers is partly reliant on the manner in which the employee manifests the image of the company, and their happiness or disgust with the company shows in how they interact within themselves as well as with management. Training, mentoring, and coaching programs should be incorporated in the organization’s policy regarding employees and their performance. Improvements to the service delivery aspect are dependent on the skills of employees, and some adjustments are necessary for the business to prosper. Ensuring that the employees are always up to par with the current knowledge of customer service is a responsibility that lies with the management (Turban 89). In addition, making the work environment pleasurable for the employees reflects on the customers as well. Develop Customer Service Charters and Service Standards i. Customer service charter This charter is a means by which the organization’s commitment to the customer is pledged publicly. Becoming a customer-focused organization provides the business with several advantages in terms of the perspective the society has in terms of relations with the public. The contents of the charter should focus on illuminating the value placed on the customer, which incorporates feedback mechanisms, principles of operation, dedication to customers, and company values. The approach ensures that the organization engages integrity, respect and accountability in establishing relations with all the stakeholders involved in the business operations (Solomon). The improvements in the organization are geared at ensuring the company has a positive image to the public/customers. ii. Service standards Developing a clear outline of the level of service by which the customer derives expectations in dealing with the company is an important approach to the establishment of a proper customer service strategy. The standards are essentially measurable levels or indicators of involvement that are derived and established by the organization with respect to what is expected of the organization. The best approach that Samsung should use is allowing the customers to provide their expectations to the organization (Solomon). By amassing the information from the customers and using it to develop standards, it is easier to develop a strategy that contributes to the relationship between customers and the public in general. Shaping Organizational Policies with Customer Contributions The organization must consider the customers, and use them to develop the core of business practices and to get them to improve on customer relations is determined by their contributions to the formed partnerships and relations with the market. Recommendations For the pressure cause, I propose that Samsung conduct training on how to deal with pressure within this month. Furthermore, conducting surveys on employee’s mental health periodically can aid in determining the effectiveness of the training. The cost would be about $10,000. For the working environment cause, I propose that Samsung improve the working conditions and create relaxing working environment to lessen the intensive essence of the job. To do so, Samsung needs to provide some snacks, drinks, and relaxing area in the office. This action needs to be completed by November 15, 2014. The cost would be around $30,000. Considering these issues within the company, I propose the use of two techniques to facilitate an understanding within the company’s operations: i. Behavior modeling: Showing employees how to do various tasks and providing them with experience is a positive reinforcement technique that would facilitate change in the organization. According to the social learning theory, the employees have a chance and ability to learn from teachings by the management and team leaders, consequently gaining skills and hands-on experience. ii. Role-playing: Role-playing in the workplace is a useful strategy within the organization in learning the challenges that are faced by each individual. Using role-playing can facilitate solutions in resource allocation, training, negotiations, and conflict resolution, among others. Conclusion By implementing those solutions, employees will work with positive psychological state so that their attitude toward customers will be polite and professional no matter how customers talk to them. The proposed solutions are objected at improving the relationship between the customer and employees, in Samsung’s customer support. The above discussion and recommendations demand that Samsung improves on the employee policy to empower their contributions to customer challenges, by developing an employee well versed with the company operations, in different product departments, to improve on knowledge directed towards customer-service In this way, stronger customer loyalty will be built that leads to better company image and increasing revenue. If this proposal is adopted, I have some additional thoughts about improving employees’ morale. I await a future meeting whereby I will elaborate further on the details of this proposal and answering any questions you may have. Works Cited Buchanan, Leigh. "A Customer Service Makeover". Inc. magazine. 1 Mar. 2011.Web. 28 Nov. 2014. Solomon, Micah. “Seven Keys to Building Customer Loyalty--and Company Profits.” Fast Company. 4 Mar. 2010. Web. 28 Nov. 2014. Turban, Efraim. Electronic Commerce: A Managerial Perspective. London: Prentice Hall, 2002. Print. Read More